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2

If you realize a loss and within 30 days before or 30 after realizing that loss you purchase replacement shares then you cause a wash sale. This applies to all of your accounts regardless of whether they are retirement or non-retirement accounts. Here's the real pitfall. If the realized loss occurs in a non-retirement account, the loss is added to the ...


4

One thing to look out for here is that it could count as a wash sale. If you sell a security at a loss, and buy the same (or substantially identical) security within 30 days of the sale (either before or after), the loss is disallowed as a deduction (so would not offset any gains). You would want to either buy different stocks, or wait 30 days between the ...


-1

Well, my answer is yes. Let me prove why, when you contribute to 401k its tax free, and when your employer matches its tax free, plus you still pay income tax through withholding. Now this is where it gets funny. When you retire and pull out your 401k it gets pulled out as ordinary income, which gets taxed at the normal tax rate as though you worked for ...


2

No one can contribute to a 401(k) that was established by a previous employer-- not you and not one of your clients. (Well, depending on how you might define "contribute", if you have a rare 401(k) that lets you take out a loan and pay it back after separation, I suppose you might argue that the interest you're paying counts..) As a sole proprietor, your ...


2

Or, alternatively, do I need to take the client fee as income and then deduct it somehow? Yes, but note that you can't contribute to a 401(k) after you are no longer employed by the company - you will need to roll that money into an IRA. After that, then you would count the income as income, then deduct the IRA contributions (subject to annual ...


2

No, your clients cannot contribute directly to your retirement accounts. The taxes are figured out every year when you file your income tax return. There's no advantage to having a client pay into a retirement account, even if it were possible. So, yes, you take the client fees as income, then contribute to your retirement accounts as you see fit and as ...


2

Say, when we get to the age of 65 or 67, and retire, and we take out most of the 401(k) and IRA money, if luckily they can grow to $1,000,000 to buy a second house, all at once, will we be subject to a huge amount of tax, such as $300,000? All the funds in the traditional 401(k) and traditional IRA are pre-tax. This also includes any matching funds ...


2

Once you have gotten the maximum matching on the 401k, further contributions to the 401k are just like deductible IRA contributions. They reduce your taxable income this year and are not taxed until the money comes out. You may even roll them over to an IRA in the future if you change jobs. The advantage over the nondeductible IRA is the money that would ...


2

You need to determine how much you need to put into your retirement accounts this year, and then decide on the best split that gets you to your goals. Should I be maximizing my traditional/Roth 401k contributions before I even consider a traditional IRA? You should put enough money into the 401(k) to get the maximum company match. Then decide if you ...


10

There are at least two reasons to contribute to an IRA: A backdoor Roth IRA. You can still get your money into a Roth IRA to grow tax free. However, there may be some pitfalls. Deferred tax on growth. If you're deciding between traditional IRA vs. taxable account, the benefit is that the growth (dividends, interest, capital gains) aren't taxed until ...


5

Are you sure it's actually 2020 and 2021 instead of 2019 and 2020? If yes, then I would contact your broker because I believe it is a bug in their software and/or a misprint. Right now you should be able to contribute to both tax years 2019 and 2020 until July 15, and then only tax year 2020 from July 16 - Dec 31 of 2020. You cannot start contributing to tax ...


2

You can contribute to your IRA 'for 2020' from Jan/1, 2020 till Apr/15, 2021, a total of 15.5 months; this is true for every year respectively. You just have to stay within the annual limit for each plan year. This means that in each period from Jan/1 to Apr/15, you can contribute for the previous year and the current year. It is legal to do this in any ...


0

You can contribute to an IRA from January 1st of the year in question to April 15th of the following year. As a result, during the period January 1st to April 15th you may be able to contribute to either IRA (which is why you need to specify). I do not know if the deadline has been extended this calendar year in line with the extension of the tax filing ...


3

Whether the Traditional IRA contribution is from "pre-tax" or "after-tax" money is determined by whether you deduct the contribution when you file your tax return. If you are eligible to deduct your Traditional IRA contribution (let's say it was $6000), and you deduct it on your Form 1040 Schedule 1, then $6000 is deducted from your income (so your income ...


0

For tax year 2019, the IRA Deduction is handled on Schedule 1 (Line 19). The instructions are included in the Form 1040 instructions and discuss the eligibility requirements.


5

There is no penalty or limit on conversions, ever. You can convert a million (if you manage to have in your IRA, which is hard to do), and only pay taxes for it, no penalty, so you are clear of penalty for sure. If your contribution was tax-deductible, you will have to pay taxes on the whole amount, and can deduct the contribution, so yes, you'll end up ...


1

SIMPLE employee contributions must come out of wages paid during the tax year, though employer has 30 days to deposit it, thus Jan. 30 for Dec. payroll. See https://www.irs.gov/retirement-plans/simple-ira-plan-faqs-contributions . If self-employed you could retroactively declare yourself paid in Dec. up to Jan. 30; OTOH self-employed with no eligible ...


0

No, 401k withdrawals is not 'earned income' Your earned income for 2018 is $3000. Normal contributions to a Roth IRA or Traditional IRA can only occur during that tax year up through the tax filing deadline (April 15) in the following year (2019). If you meant 2019 earned income is $3000, then you have until the new tax deadline of July 15, 2020 due to ...


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